The Business On... Bill Gross, Director, Pimco
Thursday 15 July 2010
Never heard of him.
Well, you should have done – the bond market may not be as well known to the world at large as the stock market, but it's where the real power lies these days. As the boss of the world's biggest bond fund manager, Mr Gross has the power to make or break companies or even countries.
Is he really so scary?
Put it this way: the reason George Osborne and friends are so desperate to cut spending and raise taxes is they're terrified the bond markets will lose confidence in Britain. Mr Gross – often described as the Warren Buffett of the bond world – has certainly added to that anxiety. Earlier this year he warned that gilts, UK government bonds, were "resting on a bed of nitroglycerine".
So what does he think now?
The gossip is that Pimco is reconsidering its views after a much stronger performance from gilts than it expected over the past six months.
You don't mean Mr Gross got it wrong for once?
It certainly seems that the collapse in gilt prices Pimco was expecting has not materialised. Still, they're smart folk over at Pimco: they didn't actually dump gilts, gambling instead on German bonds doing better, which they mostly have done.
What will he do with his latest winnings?
One of two things. He might spend a bit more on home improvements – having coughed up $23m for a waterside mansion in Newport Beach, California last year, he demolished it and has been rebuilding. Or he might buy a few more stamps. He's a renowned philatelist and one of only three owners of a complete collection of 19th century US postage stamps.
At least he hasn't got it in for us here in Britain any more.
He ought to be grateful really. He sold his British stamp collection for more than $9m a few years ago (donating the proceeds to Medecins Sans Frontieres). Maybe that's why Pimco took on a Briton as its European boss – one Andrew Balls, the brother of Ed Balls, Gordon Brown's sidekick at the Treasury for so long.
- 1 Jennifer Lawrence scores first UK top 40 single with Hunger Games track 'The Hanging Tree'
- 2 Shia LaBeouf claims he was raped during #IAMSORRY art installation performance
- 3 'You should come to my house and eat cheeses with me': 4-year-old sends adorable love letter to girl at school
- 4 Scientists predict green energy revolution after incredible new graphene discoveries
- 5 Michael Buerk wishes he killed Jimmy Savile when he had the chance - by pushing him overboard a cruise ship
Sean Abbott: Messages of support flood in for bowler after death of Phil Hughes
Dr Lam Hoe Yeoh: Voyeur doctor jailed for eight years after using network of hidden cameras to film patients, colleagues and friends on the toilet
Kim Jong-un 'in dire need of allies' within his own government as younger sister appointed to senior role
Scientists predict green energy revolution after incredible new graphene discoveries
Michael Buerk wishes he killed Jimmy Savile when he had the chance - by pushing him overboard a cruise ship
Obama: The only people with the right to object to immigration are Native Americans
Ukip says babies born to immigrants in the UK should be classed as migrants – which would include Nigel Farage’s own children
The young are the new poor: Sharp increase in number of under-25s living in poverty, while over-65s are better off than ever
Tamir Rice: 12-year-old boy playing with fake gun dies after being shot by Ohio police
Ukip mocked after mistaking Westminster Cathedral – for a mosque
Plebgate: Andrew Mitchell’s reputation in tatters as judge rules he used the word ‘pleb’
£30000 per annum: Recruitment Genius: Exciting career opportunity to join East...
£18000 - £28000 per annum: Recruitment Genius: An ambitious start-up company b...
VOLUNTARY ONLY - EXPENSES REIMBURSED: Reach Volunteering: Do you love the Engl...